Crop Progress Showed Some Corn Progress
Good Morning!
We have New Home Sales at 9:00 A.M., Cold Storage at 2:00 P.M. and API Energy Stocks at 3 :30 P.M. Crop Progress showed a little improvement as Farmers ramp it up with whatever they can, but Mother Nature has dealt a big blow while the prices are too cheap. Funds remain record short and they don’t look to scale back anytime soon with weather forecasts changing and the uncertainty in the delicate U.S.-China trade talks and it looks like the money managers have not given up riding this pony down. Just like we saw with the Iranian waiver announcement certain traders saw it coming Sunday night and started to buy. But back to Corn if we have an announcement that a positive deal is struck, we could see a mass exodus. In the overnight electronic session, the May Corn is currently trading at 354, which is ¾ of a cent lower. The trading range has been 355 to 352.
On the Ethanol front Marquis Energy has “shelved” plans for an Ethanol plant in Scott County Illinois. The company had plans to develop a $500 million Ethanol plant to be built near the Bluff by 2020. However, Illinois government anti-business and high tax policies will require the company to pursue expansions in surrounding states. In the overnight electronic session the June contract surpassed the May two to One in Open Interest so we will change our focus to the June contract which is currently trading at 1.362, which is .015 higher. The trading range has been 1.363 to 1.362. 5 contracts traded and Open Interest is at 910 contracts. The market is currently showing 1 bid @ 1.348 and 1 offer @ 1.356.
On the Crude Oil front we may see a chop from Mondays rally and see a pullback and see a Turnaround Tuesday, however, the news is bullish and this afternoon's API data should have an interesting spin on the numbers and we could see a hard and fast rally. In the overnight electronic session the June Crude Oil is currently trading at 6564, which is 9 points higher. The trading range has been 6619 to 6559.
On the Natural Gas front the bears still have it. The market is moving slowing down the rabbit hole with the May contract currently trading at 2.523 which is .001 of a cent lower. The trading range has been 2.535 to 2.556.
Have a Great Trading Day!